Telewest refinancing clears key hurdle

Telewest has moved into the final stages of financial restructuring.

Telewest has moved into the final stages of financial restructuring.

Telewest's new holding company, Telewest Global, has filed statements with the US Securities and Exchange Commission (SEC) that should enable it to complete the long-awaited debt-for-equity swap with bondholders.

At the same time Telewest said managing director Mr  Charles Burdick would remain on the board of Telewest Global as chief executive officer.

Telewest chairman Mr Cob Stenham said: "With the filing of the SEC registration statement, we are all pleased to be entering the last stages of the restructuring, which we now anticipate will be completed during the new year.

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Under the debt-for-equity agreement, bondholders have agreed in principle to swap around £3.5 billion sterling in debt for a 98.5 per cent holding in the group. Existing shareholders will have the remaining 1.5 per cent of the company, which is expected to trade on the Nasdaq National Market.

Earlier this month, Britain's number two cable operator said it had reduced net losses for the nine months ending September 30 by 18 per cent to £327 million.